Property Market Failing Would-Be Movers
The lifestyles of UK homeowners are quickly changing.
Family expansions, career moves and new business ventures are causing Britain's homeowners to outgrow their current homes, leaving them looking for more space in a new property.
The current property market, however, may not be doing enough to satisfy those needs.
Increasing house prices and a lack of suitable housing stock is proving to be a hindrance to homeowners and many now find themselves unable to take the next step on the property ladder.
20% of owners unable to make their next move blame the fact they can't find a suitable property in their price range, while 43% of homeowners across the UK said the process of finding a suitable home was discouraging them from looking at a move altogether.
There is also a financial gap to overcome for people looking to sell their homes to finance their move.
LLoyds Bank recently published data that revealed the gap between the sale of the average homeowner's current property and the cost of their perfect home – usually a detached property – is now £135,985.
These challenging market conditions are having a big impact on the number of people moving home, many people are now turning to home improvements to find the space they need, whether that's for a growing family or for the beginnings of a home business.
We're turning into a nation of home improvers rather than home movers and the data proves it.
Research carried out by Hiscox shows that in 2013, only 3 percent of homeowners decided to improve their existing home instead of moving, that number has now jumped to 15 percent. Among millennials, it’s more than one in four.
The Lloyds Bank 'Second Stepper' report focuses on homeowners that are now looking to sell their first-time-buyer property, the most recent report found home improvements to be a popular solution for many Second Steppers struggling to sell their current home, the percentage of people turning to home improvements in 2016 was 34%, increasing to 40% in 2017.
With these market conditions continuing to cause problems in the UK, many homeowners will be weighing up the costs and benefits of an improvement project.
We continue to see a rise in the number of people looking to remortgage their homes in order to raise additional funds for home improvements.
sources:
https://www.hiscox.co.uk/sites/uk/files/documents/2018-03/Hiscox_renovations_extensions_report_2018.pdf
http://www.lloydsbankinggroup.com/Media/Press-Releases/2018-press-releases/lloyds-bank/030318_LB_SS1/
http://www.lloydsbankinggroup.com/Media/Press-Releases/press-releases-2017/lloyds-bank/111217_LB_Homeowners/
